CNG is the clean burn fuel. But the imported fuels are not clean or purified. By using CNG maintenance cost of the vehicle is reduced. It increases engine life. Life of the lube oil is increase only for using CNG. CNG is an economical automobile fuel, which substantially reduces transportation costs for motorists. It is the most economical fuel and saves more than 55% of the fuel expenditure over petrol. A country can have cleaner environment with use of CNG, while new job opportunities and economy are other benefits. Certain countries like Bangladesh which have huge reserves of CNG can also export it to generate revenue. This will also reduce the expense of fuels we have to import.
Navana CNG Limited, a sister concern of Navana Group is the leading CNG service provider in Bangladesh. Its years of experience are the standard setter of CNG industry. At present Navana CNG have around 900 personnel in various departments and branches. Navana cng targets the customer who has at least 1 vehicle. Most of the vehicles of our country run in Dhaka, Chittagong and Sylhet. So, Navana cng spread their business in those areas and covering 40% market share. They are leading this Industry but at SWOT analysis we can see their weakness. Their products are best in the market but their price is high regarding the competitors.
The shortage of gas & electricity in our country is a great threat for this industry. Navana should knock at the door of government regarding this situation.
ORIGIN OF THE REPORT
This is a report of the internship program of MBA, supervised by Mr. Anowar Hossain, Lecturer, Department of Marketing, and University of Dhaka. I was placed to a private firm named “Navana CNG Limited” for the three months internship to have a practical knowledge of corporate world. It is a firm operates business for a clean alternative fuel. In Bangladesh this kind of business especially the CNG sector is really prospective but few of us are much aware of it. So after realizing the situation my honorable supervisor selects the topic of the report as “Marketing Aspects of Navana CNG Limited”.
A. Broad objective: With the help of this report, I will be able to acquire in knowledge on marketing.
B. Specific objective: The Specific objective of this report is to:
Identify and analyze the Corporate, Business and Market strategy of Navana CNG Ltd in CNG industry.
Acquire in depth knowledge of strategy making process.
In this data collection, usually I used two methods, such as-
Primary Data: It is taken information from different employees of Navana CNG Ltd. It was face-to-face communication. I also asked different client of Navana CNG ltd. about the company. Some people are very cordial to respond me.
Secondary Data: Review of literature, journal and other relevant books have used for secondary information. To preparing this unique report, I used different web sites as well as Navana CNG Ltd web site.
I have faced the following limitations when conducting this study:
- Time constraint for conducting the study:
The entire study has been conducted within three months, which is the duration of the internship program. This short period of three months is not sufficient for conducting a study efficiently.
- Reluctance of providing data:
Another problem I have faced during my study is the reluctance of the authority to provide information. Not all necessary data are available due to privacy and for this it was not possible to provide available numeric data.
- Inadequate fund:
I have limited fund to conduct the study.
- A comprehensive methodology could not be applied due to time constraints.
- No sufficient support from navana:
The employees of Navana CNG remain very busy with their working during most of their office hours. Though they had been very cooperative, they could not afford enough time for the study.
LACK OF EXPERIENCE:
To complete such kind of report need a lot of experience. But I had very little experience in this work field. So errors are possible in this report
ORGANIZATION OF THE STUDY
This study is mainly presented dividing it into 6 chapters.
The first chapter is concerned with introduction of the study. Here 2 chapters are included. The first chapter presents the background of the study, statement of the problem, objectives of the study, scope and methodology of the study, limitations of the study and explanation of various terms used. The second chapter describes the overview of Navana CNG Limited. This chapter includes introduction of Navana CNG limited with its vision mission objectives and its refueling stations and products (Brands they offer).
Third chapter discusses the basics of CNG which will help the reader to understand the basic issues of CNG and its business part along with its development in the context of Bangladesh. Here presents the prospects of CNG businessin global as well as Bangladesh context. The Fourth chapter represents the statistical overview of CNG industry of Bangladesh
The Fifth chapter is the focal part. Here the main issues of discussion are presented. Various tools of marketing of Navana CNG are discussed here. To have an overview of the firm a SWOT analysis is also added at the end of the chapter.
NAVANA LIMITED, the flagship company of the NAVANA GROUP (previously Islam Group) was established in 1964 by the then Group’s founder Mr. Jahurul Islam and had an auspicious step into the business under an exclusive distributorship agreement with TOYOTA of Japan to market Toyota cars in the then East Pakistan. NAVANA GROUP under the prominent leadership of Mr. Shafiul Islam Kamal as Chairman emerged into a separate physical entity from Islam Group after the death of it’s Chairman Mr. Jahurul Islam which was then the largest business group in Bangladesh. NAVANA GROUP comprising of a number of companies, has diversified its activities in various areas like product and project marketing, construction and real estate business, international trading, distributorship and production of various items and already attained significance in the business arena of Bangladesh.
Navana Business Philosophies:
It was indeed a great honor for our Chairman Mr. Jahurul Islam and the Vice Chairman Mr. Shafiul Islam Kamal (now Chairman of NAVANA GROUP) who are entrusted in the business community as pioneer in the business arena of the country. Due to the dynamic leadership of the key figure of the Group, with in a short span of five years, Toyota Corona, nicknamed the “Miracle Car” captured 80 percent of the 1300-1500 cc Volkswagen, Opel, Hillman, Austin, Morris etc. This was a tremendous marketing achievement set forth by NAVANA, Toyota is still enjoying. As an outcome of NAVANA’s pragmatic marketing strategies and huge efforts Toyota Car’s resale value has been reached the highest level in Bangladesh compared to that in other countries which has been appeared as major factor influencing customer’s buying decision in favor of Toyota. In a later years the Group has entered into an exclusive distributor franchise with HINO Motors of Japan and as a result of the dynamic leadership of the Group’s Chairman and with a team of experienced marketing experts the HINO brand has been able to attain a significant market share in our heavy transport sector and now HINO is the symbol of prestige. This has been possible due to the Group’s excellent reputation, marketing strategies and due efforts. In August 1981, the Group set up Aftab Automobiles Ltd. to assemble Toyota and Hino vehicles for the Bangladesh market. Aftab Automobiles Ltd. is the largest private sector automobile assembling plant in Bangladesh. Aftab Automobiles Ltd. became a listed company on the Dhaka Stock Exchange in 1987.
In 1998 Aftab Automobiles Ltd. has gone under a massive BMRE program and as a result of the program, it started its Body Fabricating Unit, Paint Manufacturing Unit and Battery Unit.
Soon after separating from Islam Group, Mr. Shafiul Islam Kamal who was also in charge of Construction Division and the Real Estate Division in the then Islam Group formed a new construction & real estate developing unit of the Group named: Navana Construction Ltd. and Navana Real Estate Ltd., which is now one of the leading construction and real estate developing company in Bangladesh.
In the trading front, the Group has brought into existence a separate trading unit in 1996 namely Biponon Limited. This company commenced business in the potential field of Health and Medical Equipment Sector. And within a short span of one year since its commencement it was awarded with one of the biggest single tender under the Ministry of Family & Welfare, worth of US$ of 5.0 million to supply & installation of Medical Equipment under EC finance.
Taking into consideration of the importance of the aid worthy projects the group introduced another company in 1998 namely Navana Interlinks Limited in its chain. Navana Interlinks Limited has started involving in the potential sector of Civil Aviation, Telecommunication, Power Development, Heavy & Light Industry Sector, Food Sector, Chemical & Bulk Commodities Supply & Indenting, as well as turnkey projects in these sectors. And within a short span of time the company has picked a number of projects some of them have come into matured stage. In the very potential IT arena the group has landed with a new company namely Navana Computers & Technologies Ltd. In short span of time it has earned a reputation and gained customer satisfaction in IT market. It is already appointed as the Reseller of Hewlett Packard. In 1999, it started production of NAVANA brand AVR & subsequently considering the market prospect it also started production of IPS & UPS in May 2000. The recent success of this company is to enter into a distributorship agreement with GATEWAY INC., USA for marketing its complete range of products in IT market. Aftab Automobiles Ltd., the listed company on Dhaka Stock Exchange has introduced a new unit for manufacturing paints with brand name NAVANA PAINTS. The company started production in November 1999 and launched marketing through exhibition at DITF 2000. The response from the users so far is tremendous.
Aftab Automobiles Ltd. also established a new unit of manufacturing of Batteries under the brand name of NAVANA. And within a short span of time since its inception the company has able to establish its good will n the market.
Over the years NAVANA GROUP has established itself under the dynamic leadership of Mr. Shafiul Islam as Chairman. With the dynamic leadership of Mr. Shafiul Islam – Chairman, Navana Group has established itself as one of the leading and fastest growing Group of companies in Bangladesh. And more diversification is awaited in the different sectors like Public Pay Phone Service, Pharmaceutical Sector, and LPG distribution
Different Concern of Navana Group:
Navana Textiles: Navana Textiles Ltd. a new venture of Navana Group of companies.
Navana Computers & Technologies Ltd. Navana Computers & Technologies Ltd. (NCTL) came into physical existence in the ever potential IT Sector.
Navana Real Estate Ltd : Navana Real Estate Ltd. (NREL) as a company belongs to the prestigious NAVANA GROUP.
Navana Computers & Technologies Limited (Software Unit): Navana Soft under NCTL started their operation in the year of 2000. Navana stands for quality and trust. In the potential IT sector Navana has earned reputation and gained customer satisfaction than any other computer companies in the market within the short span of time.
Aftab Automobiles Ltd. (Automobile Assembling Unit): Aftab Automobiles Ltd, a sister concern of NANANA Limited mainly a vehicle assembling and small parts manufacturing company
Aftab Automobiles Ltd. (Bus Body Fabrication Unit): This unit was introduced in 1997 and has been producing about 200 units of Hino Bus and Hino Mini-Bus Body annually
Aftab Automobiles Ltd. (Paints Unit): In 1999, Aftab Automobiles Ltd. introduced a new manufacturing unit
Aftab Automobiles Ltd. (Battery Unit) : Aftab Automobiles Ltd. Introduced a Battery Manufacturing unit, concern of Navana Group
Aftab Automobiles Ltd. (Furniture Unit): NAVANA furniture is an ancillary of A.A.L is one of the member companies of NAVANA Group
Navana Logistics Ltd.: NAVANA LOGISTICS LTD commenced its operation as a concern of country’s leading business.
Navana Limited: Navana Limited, the flagship company of the Group was established in 1964.
NAVANA CNG LIMITED: A sister concern of NAVANA GROUP, is the leading CNG service provider of Bangladesh.
Navana Electronics Ltd. Navana Electronics Ltd., a prospective company of NAVANA GROUP is running it’s business since October 1996 under the prominent leadership of Mr. Shafiul Islam Kamal, the successful Chairman of the group.
Navana Construction Ltd. Navana Construction Ltd. (NCL), a full-fledged construction.
Navana Interlinks Ltd. Since its inception Navana Interlinks Ltd. (NIL) at the trading front to diversify business.
Biponon Limited: Biponon Limited came into being in 1996 as a specialized company in the field of Medical & Health Sector.
Navana Distributions Ltd: Keeping in mind to contribute to upgrade the living standard the Group is also setting up a new company for marketing of consumer products of world renowned companies and highest quality.
Navana Taxi Cab Co. Ltd. Everyday we serving near about 150 customers by providing our taxi cab on the call basis.
ABOUT NAVANA CNG LIMITED
Navana CNG Limited, a sister concern of Navana Group is the leading CNG service provider in Bangladesh. Its years of experience are the standard setter of CNG industry. They start their journey from the year 2000. Now they are the market leader of this industry. At present Navana CNG have around 900 personnel / employee in various departments and branches. Navana CNG Limited is the sole distributor of world famous CNG and LPG conversion kit manufacturer Landirenzo, s.p.a, Italy. Navana CNG Limited solely represents the renowned manufacturer of CNG re-fueling station technology Safe s.r.l, Italy. It has also collaboration with Omnitek, USA for diesel driven vehicle conversion into CNG. For fast filling system Navana CNG represents WEH, Germany and OMB Saleri, Italy make products in Bangladesh. It has set up a modern CNG cylinder re-testing centre in collaboration with AirBlast S.A, Argentina.At present, Navana CNG Limited is running seventy conversion workshops located at various location in Bangladesh. Navana also operates more than 300 CNG filling station in Bangladesh.
Core services provided by Navana CNG Ltd.
Petrol / Octane driven vehicle conversion into CNG.
Diesel driven vehicle conversion into CNG.
Diesel Generator conversion into Diesel Gas System.
4-stroke 3-Wheeler conversion into CNG.
Selling gas through CNG re-fueling station.
Selling CNG re-fueling station on turn-key basis.
Selling CNG conversion kit, cylinder, valve and re-fueling nozzle, receptacle etc.
Offering package maintenance program for CNG re-fueling station.
CNG cylinder Re-testing facility.
Providing training on CNG conversion and re-fueling station.
Our vision is to be the point of reference for complete CNG solution.
We strive to deliver defect free services and perpetuate an attitude of “do it right at the first time”
“For a clean alternative”
Major Business Area of Navana CNG Ltd.
a) CNG RE-FUELING STATION
Marketing, sales, installation, commissioning and after sales service of CNG re-fueling station in collaboration with Safe s.rl, Italy.
A complete CNG refueling station includes following items:
- Compressor (1 unit)
- Storage (1 unit)
- Priority panel (1 unit)
- Dispenser (2 units)
- Air compressor (1 unit)
- High pressure tube and fittings
- Electrical cables
- Spare parts (4000 hrs operation)
c) Cylinder Retesting Station
GLOBAL PROSPECT OF CNG MARKET
Pakistan reports its position on CNG business as third in the world just after Argentina and Brazil. Such a position also demands its more aggressive growth. Here it is discussed.
Pakistan CNG Industry Growth
Growth expected to continue due to Govt. Support, Incentives and Price differential
- 50% p. a. growth rate to continue for next 2 years
- Auto Manufacturers are introducing OEM CNG vehicles.
- Approx. 50% are produced with factory fitted CNG Kits
- Deteriorating environmental conditions in big cities has led Govt. to plan reduction of diesel usage in urban areas. Legislation in progress to cut down on diesel and introduce CNG fleets / buses.
- Major City (Karachi, Lahore, Rawalpindi) Governments have announced plans to introduce CNG buses in next 1- 2 years
India being the second largest growing economy in the world shows great prospects and grown in the sector of Alternative fuels. All major cities in India have begun the drive of use of Alternative Fuels mainly CNG & LPG for Transportation. Well connected supply lines of Natural Gas have been laid so as to meet the demand of fuel.
Currently the Foreign Companies which have gained some percentage share are mainly from USA & Italy. Still there exists a large scope of business potential in India.
Compressed natural gas (CNG) vehicle sales had a boom year, as soaring petrol prices in the first half of 2008 pushed more people towards alternatives. But industry observers said interest may be waning, as pump prices have since softened. By the end of last year, there were 2,444 cars which can run on CNG, 10 times the population in 2007. Taxis which run on CNG proliferated too, with their numbers rising by more than four times to 977 units.
Charles Tan, a director of King Long Singapore, said lower running cost has become less of a reason for switching to gas since petrol and diesel prices started to fall in the second half of last year. But he said CNG buses are cheaper than diesel models, partly because of a green vehicle rebate. His CNG coach costs $150,000 compared to $180,000 for a diesel equivalent.
CNG Business Prospects –Summary
- Egypt is carrying out an extensive reform aimed at opening the economy for foreign investments.
- Consulting opportunities in the environmental sector are needed but highly competitive. Local firms will develop their capacities to offer services through a comprehensive teaming with European counterparts.
- Solid waste management, Environmental monitoring equipment and CNG vehicles offers a major market.
- Practices to date show that Joint ventures between Egyptian and European enterprises in CNG energy is well functionin
WHY CNG FOR BANGLADESH
Bangladesh has a large amount of stranded gas. Most analysis recommends CNG as a major downstream use for this gas. CNG use could save Bangladesh significant amounts in foreign exchange. World Bank estimates savings of Tk. 4 core per station per year which is twice that of the investment cost. Maintaining air quality in metropolises like Dhaka has become the nation’s top most priority. CNG could cater to that need and make significant cross savings in the health sector and reduce public health hazard. World Bank recently estimated that about Tk. 117 core per year can be saved in health costs in Dhaka city alone on account of PM reduction. This does not include mortality estimates. Cost of CNG is attractive and could offer significant consumer savings to the average consumer.
HISTORY OF CNG IN BANGLADESH
CNG as a vehicle fuels was first introduced to Bangladesh in 1982 through a World Bank pilot project 4 CNG stations were established and a 1000 vehicles converted in the last 16 years In 1999, four private companies obtained permission to set up about 5 stations each The government also approved a foreign joint venture with RPGCL to set-up 51 stations wherever piped gas is available in early 2000. In this project 2 400 CBM/HR capacity stations have already been set-up And another 6 will be established within 2001. Finance already cleared for this. Pilot conversion of two-stroke auto rickshaws under BEMP (CIDA-funded) has proven successful and large-scale conversions are now being contemplated. It is believed this will be the first 2-stroke conversion project.
Government considering creation of a research and development center, National standards, safety codes and regulations for safe use of CNG in vehicles and appliances are being developed with foreign assistance
Funding for R & D for Development of standards
- To make CNG popular as an automotive fuel, government has intensified its mass media efforts.
- To stimulate the demand for CNG vehicles, government is developing an accelerated vehicle conversion program with RPGCL as the “Center of Expertise”. It will be entrusted to train and certify conversion centers and enforce standards, so that substandard conversions are discouraged.
Market development, communication and public awareness
- Four 2-stroke baby-taxis were successfully Converted to CNG in late May 2000 by the Department of Environment under the CIDA-funded Bangladesh
- Environmental amazement Project (BEMP)
- Most noticeable feature of the converted baby-taxis is the low tailpipe emissions (reductions of CO by 90%, hydrocarbons by 83%, CO2 by 48% and NOx/SOx by 99%)
DRIVERS OF CNG PROGRAM
One of the strong factors that had driven the NGV development was the economics. The price advantage of CNG vis-à-vis other fuels is shown as below.
The cheaper price of CNG in comparison with petrol provides excellent incentives for auto-rickshaw drivers and owners to convert CNG.
- SUPPORT FROM GOVERNMENT, JUDICIARY AND ENVIRONMENTALISTS
Success of NGV market would not have taken place without the active support for the various agencies.
- ROLE PLAYED BY THE GOVERNMENT
Government provided the concessions on the Customs duty, helped the Infrastructure companies by giving the soaps on sales tax etc. Similarly Government played important role by identifying and allotting lands for setting up of infrastructure. Government had also put the required legislation and standards in place to ensure checks and balances in the system. Government also encouraged the local industry by providing the good opportunities which ultimately resulted to lower cost to the customers.
- NGO’S / ENVIRONMENTALISTS
The Non Government Organizations and Environmentalists also acted as initiators and catalyst. The social responsibility that they took upon is really a commendable job.
- STRONG PUBLIC AWARENESS
There is a strong public awareness especially after Dhaka experience on the benefits of Natural Gas as a fuel. CNG has already replaced approximately 1400 kl (Kilo Litre) of petrol and 630 kl of diesel per day. This is fuelling the further NGV growth.
SETTING UP OF SEPARATE BODY FOR REGULATION, IMPROVEMENT (RPGCL)
Rupantarita Prakritik Gas Company Limited (RPGCL) was established in 1987 as a Company of Bangladesh Oil, Gas & Mineral Corporation (Petrobangla). The Company is responsible for popularizing CNG in transport sector by establishment of a CNG-based transportation infrastructure in Bangladesh and widening its commercial operation. The Company is also responsible for extraction of LPG, Petrol and Diesel by fractionating of Natural Gas Liquied (NGL) and marketing of the same.
In the year 1982-85, a pilot project was undertaken by Petrobangla to ascertain the feasibility of using natural gas in the form of CNG in vehicle as an alternative fuel with the financial assistance of the World Bank. The outcome of the justifying project that use of CNG is cheaper compared to gasoline and environmentally friendly. In view of the above , Rupantarita Prakritik Gas Company Limited ( RPGCL) was entrusted to commercialized the use of CNG in the transport sector.
Station & Conversion Workshop in Bangladesh
|Fiscal Year||No. of CNG Filling Station||No. of Conversion workshop||No. Converted Vehicles||No. of Total CNG-Run Vehicles|
At a Glance CNG Activities in Bangladesh
|January-2010||Average Gas used in the CNG Filling Stations in Bangladesh|
|Monthly : 92.19 MMCM ( 3255.60 MMCF) Daily : 3.07 MMCM (108.52 MMCF)|
|February-2010||Total Number CNG Driven Vehicles in Bangladesh|
|Jeep /Car /Mi-bus /Three-Wheelers -1,45,492, Auto-Rickshaw-25,773, Taxicab – 12,000, Bus-4,769|
|February-2010||Number of Vehicles Converted into CNG|
|Dhaka-107660, Savar-390, Gazipur-5990, Narayangonj-1102, Comilla-2932, Feni-150, Chittagong-16979, Bogra-2264,Sylhet-6961, Pabna-266, Moulovibazar-638, Sirajganj-01, Noakhali-07 , Hobigonj-06& Manikgonj-146|
|February-2010||Number of CNG Conversion Workshops|
|Dhaka-61, Savar-08, Narayangonj-06, Manikgonj-03, Gazipur-09, Comilla-06, Feni-03, Chittagong-19, Bogra-10, Pabna-04,Mymensigh-01 Moulovi- Bazar- 02 , Noakhali-01, Hobigonj-01,Sirijgonj-01& Sylhet-11|
|February-2010||Number of Established CNG Filling Stations in Bangladesh|
|Dhaka-123, Gazipur-70, Savar-29, Chittagonj-61, Comilla-59,Chandpur-02, Feni-13, Bogra-19, Sylhet-29, Kishoregonj-04, Pabna-06, Narshingdi-13,B.B-aria-03 ,Mymensingh-04, Tangail-09, Manikgonj-09 , Laxmipur-02 , Moulovi-Bazar-05, Noakhali-05,Sirijgonj-01, Jamalpur-01, Munshigonj-03, Hobigonj-02 & Narayangonj-28|
Why use CNG in Vehicle
Natural gas has long been considered an alternative fuel for the transportation sector. In fact, the first internal combustion engine vehicle to run on natural gas was created by Etienne Lenoir in 1860!
The First Natural Gas Vehicle 1860
According to the Natural Gas Vehicle Coalition, there are currently 150,000 Natural Gas Vehicles (NGVs) on the road in the United States today, and more than 5 million NGVs worldwide. In fact, the transportation sector accounts for 3 percent of all natural gas used in Bangladesh. In recent years, technology has improved to allow for a
Proliferation of natural gas vehicles, particularly for fuel intensive vehicle fleets, such as taxicabs and public buses. However, virtually all types of natural gas vehicles are either in production today for sale to the public or in development, from passenger cars, trucks, buses, vans, and even heavy-duty utility vehicles.
|A Natural Gas Vehicle of the 1930’s|
Despite these advances, a number of disadvantages of NGVs prevent their mass-production. Limited range, trunk space, higher initial cost, and lack of refueling infrastructure pose impediments to the future spread of natural gas vehicles.
Most natural gas vehicles operate using compressed natural gas (CNG). This compressed gas is stored in similar fashion to a car’s gasoline tank, attached to the rear, top, or undercarriage of the vehicle in a tube shaped storage tank. A CNG tank can be filled in a similar manner, and in a similar amount of time, to a gasoline tank.
|Refueling an NGV|
This natural gas fuels a combustion engine similar to engines fueled by other sources. However, in a NGV, several components require modification to allow the engine to run efficiently on natural gas. In addition to using CNG, some natural gas vehicles are fueled by Liquefied Natural Gas (LNG). Some natural gas vehicles that exist today are bi-fuel vehicles, meaning they can use gasoline or natural gas, allowing for more flexibility in fuel choice. Many of these vehicles, which were originally gasoline, only, have been converted to allow the vehicle to run on either fuel. This conversion Is costly, and typically results in less efficient use of natural gas.
- Reasons for Expansion of NVG
There are many reasons why NGVs are increasing in abundance and popularity. New, stringent federal and state emissions laws require an improvement in vehicle emissions over the foreseeable future.. Natural gas, being the cleanest burning alternative transportation fuel available today, offers an opportunity to meet these stringent environmental emissions standards.
In addition, natural gas is very safe. Being lighter than air, in the event of an accident natural gas simply dissipates into the air, instead of forming a dangerous flammable pool on the ground like other liquid fuels. This also prevents the pollution of ground water in the event of a spill. Natural gas fuel storage tanks on current NGVs are stronger and sturdier than gasoline tanks.
Natural gas is also an economic alternative to gasoline and other transportation fuels. Traditionally, natural gas vehicles have been around 30 percent cheaper than gasoline vehicles to refuel, and in many cases the maintenance costs for NGVs is lower than traditional gasoline vehicles. In addition to being economic, many proponents of NGVs argue that a transportation sector more reliant on domestically abundant natural gas will decrease the Bangladesh dependence on foreign oil – allowing for a more secure, safer energy supply for the country.
- The Environmental Benefits of NGVs
One of the primary reasons for pursuing alternative fueled vehicle technology is to decrease environmentally harmful emissions. It is estimated that vehicles on the road account for 60 percent of carbon monoxide pollution, 29 percent of hydrocarbon emissions, and 31 percent of nitrogen oxide (NOx) emissions in the United States. All of these emissions released into the atmosphere contribute to smog pollution, and increase the levels of dangerous ground level ozone. Vehicles also account for the emission of over half of all dangerous air pollutants, and around 30 percent of total carbon emissions in Bangladesh, contributing to the presence of ‘greenhouse gases’ in the atmosphere. The environmental effects of NGVs are much less detrimental than traditionally fueled vehicles. More information on environmental standards is available at the Environmental Protection Agency .
Natural gas vehicles, when designed to run on natural gas alone, are among the cleanest vehicles in the world. In fact, the Honda Civic GX, released in 1997, has the cleanest internal combustion engine ever commercially produced. This natural gas powered automobile emits so few pollutants that in some large cities the emissions from the car are cleaner than the air surrounding it! California, with some of the tightest clean air standards anywhere in the United States, has recognized selected natural gas vehicles as meeting and exceeding its most stringent standards, including low-emission vehicle (LEV), ultra-low emission vehicle (ULEV), and super-low emission vehicle (SULEV) standards. In 2008 the Honda Civic GX was awarded, for the fifth straight year, “America’s Greenest Car” by the American Council for an Energy Efficient Economy (ACEE).
|Honda Civic GX – Super Clean NGV|
Natural gas vehicles are much cleaner burning than traditionally fueled vehicles due to the chemical composition of natural gas. While natural gas is primarily methane, gasoline and diesel fuels contain numerous other harmful compounds that are released into the environment through vehicle exhaust. While natural gas may emit small amounts of ethane, propane, and butane when used as a vehicular fuel, it does not emit many of the other, more harmful substances emitted by the combustion of gasoline or diesel. These compounds include volatile organic compounds, sulfur dioxide, and nitrogen oxides (which combine in the atmosphere to produce ground level ozone), benzene, arsenic, nickel, and over 40 other substances classified as toxic by the EPA.
Dedicated NGVs also produce, on average, 70 percent less carbon monoxide, 87 percent less non-methane organic gas, and 87 percent less NOx than traditional gasoline powered vehicles.
- NVG Market Potentiality
Natural gas vehicles as they exist today are best suited for large fleets of vehicles that drive many miles a day. Taxicabs, transit and school buses, airport shuttles, construction vehicles, garbage trucks, delivery vehicles, and public works vehicles are all well suited to natural gas fueling. Because these vehicles are centrally maintained and fueled, it is economical and beneficial to convert to natural gas.
The primary impediments to the public proliferation of NGVs include the high initial cost, limited refueling infrastructure, and automobile performance characteristics. NGVs, despite being cheaper to refuel and maintain, are more expensive initially than their gasoline powered counterparts. However, as the technology becomes more advanced, the cost of manufacturing these vehicles should drop, which may then be passed along to the consumers.
In terms of refueling infrastructure, there are currently around 1,500 natural gas refueling stations in the U.S., over half of which are open to the public. Although this is a small fraction of the number of gasoline fueling stations in the country, as environmental standards and government incentives for NGVs increase, supplying natural gas as a vehicular fuel will become increasingly common.
While driving range, storage space, and initial cost are currently preventing the mass production of dedicated natural gas vehicles (which in turn is preventing the expansion of public natural gas fueling stations), it is expected that with improved technology, research, and infrastructure, the use of NGVs in non-fleet settings will increase in the future. Natural gas vehicles present an exciting opportunity to reduce the damage of one of our most polluting sectors.
Environment & Economic Aspect of CNG
Advantage of CNG
Surveys indicate that NGVs are as safe as or safer than those powered by other fuels. In 2005 ANGV survey of more than 8,000 vehicles found that with more than 278 million miles traveled. NGV injury rates per vehicle mile traveled were 34% lower than the rate for gasoline vehicles. There were no facilities reported even though there vehicles were involved in over 1,800 collisions.
The CNG is lighter than the Air, Disperses very quickly without making any accumulation. The ignition temperature of CNG is higher than the liquid fuels petrol/diesel (gasoline) & LPG; it reduces the danger if an accidental spontaneous inflammation. The CNG has been stored at high pressure of 200 bar in cylinders, which makes impossible entrance of air that save any kind of explosive.
- Environmentally Clean
- Compressed natural gas is the cleanest burning fuel operating today. This means less vehicle maintenance and longer life CNG vehicles produce the fewest emission of any motor fuel.
- Dedicated Natural Gas Vehicle (NGV) has little or no emissions during fueling. In Gasoline vehicles, fueling emissions account for at least 50% of a vehicle’s total hydrocarbon emissions
- CNG produces significantly less pollutants than gasoline.
- Tailpipe emission from gasoline operated cars release carbon dioxide, which contributes to global warming. This is greatly reduced with natural gas.
- The CNG don’t have any additives, very low toxic and its homo¬genous mixing with Air is making an almost perfect combustion that particularly neutralizing the pollution of the environment.
- The CNG creates the environments like the Natural Green & Clean and makes the Green Revolution in the weather.
- Easy Maintenance
- Some fleet operators have reduced maintenance costs by as much as 40% by converting, their vehicles to CNG.
- Intervals between tunes – ups for natural gas vehicles are extended 30,000 to 50,000 miles.
- Intervals between oil changes for natural gas vehicles are drama¬tically extended – anywhere from 10,000 to 25,000 additional miles depending on how the vehicle is used.
- Natural gas does not react to metals the way gasoline does, so pipes and muffles last much longer.
- Better Performance:
- Natural gas gives the same mileage as gasoline in a converted vehicle.
- Dedicated CNG engines are superior in performance to gasoline engines.
- CNG has an octane rating of 130 and has a slight efficiently advantage over gasoline.
- Because CNG is already in a gaseous state, NGVs have superior starting and drivability, even under severe hot and cold weather conditions.
- NGVs experience less knocking and no vapor locking.
No. of CNG Conversion Workshop in Bangladesh
There are more than 160 CNG conversion workshops are available in the country. Most of them are located in Dhaka. Following is the geographical location of Conversion Workshop in Bangladesh:
|Location||CNG conversion workshop|
Major CNG Conversion Companies in Bangladesh
- Navana CNG conversion
- Southern CNG conversion.
- Rahimafrooj Cng conversion
- Intraco CNG conversion
- Shohagh CNG conversion
- Shadin CNG conversion
- ACE Workshop & Service Center
- Baraka Limited
- Navana CNG limited
- Epsilon Eximco CNG Conversion Centers
- Green Fuel CNG Conversion Center
- Howlader Workshop & CNG Conversion Center
- Power Genereation Ltd.
- Sanji Automobiles Ltd CNG Conversion Workshop & Service Center
- Savron CNG Conversion & Refueling
- Super CNG Filling Station & Conversion Workshop
- Toyo Automobile & Engineering Services Ltd
Market share of major CNG Conversion Workshop
Navana operated nine CNG conversion workshops in Bangladesh. Though Navana CNG limited is the pioneer in CNG market, they don’t operate a large number of CNG conversion workshops. By their limited number of CNG conversion workshop they Convert more than 400 cars in each day. Here it is seen that major CNG companies operate only 15% CNG conversion workshop, rest of them are operated by other CNG companies, majority of them are not renowned.
Number of Established CNG Filling Stations in Bangladesh
Till February 2010, more than 500 CNG filling stations are established in Bangladesh. Though Dhaka covers the majority, but other stations are located all most over the country.
|Location||No. of Filling Station|
Market share of major CNG Filling Station
As more than 500 CNG filling stations are available in Bangladesh, Navana covers 344 CNG filling station. Southern & Intraco also worlk hard to get a better position.
Growth ratio of major CNG companies
CNG business emerged in 2000 in Bangladesh. Navana Limited started their business from that period of time. Navana limited started quite well, at first three years. But from 2003 -2006 they lost some of their market share as well growth. But from 2006 they came back their right track. Look at the growth ratio of Navana, much higher than any other firm. Within a very short period of time Southern takes the second position in the market.
Comparative study between Gas & Octane/Petrol
Here we provide a comparative study between Gas & Octane/Petrol which may help you to understand why your choice will be CNG for you vehicle.
|Cylinder Description||Gas Capacity||Equivalent Petrol/Octane||Fuel Cost||Gas Cost||Savings|
|22 Liter||5.5 CBM||6.77 Liter||521||46.75||474.25|
|30 Liter||7.5 CBM||9.23 Liter||710||63.75||646.25|
|40 Liter||10 CBM||12.30 Liter||947||85.00||862|
|60 Liter||15 CBM||18.45 Liter||1420||127.00||1293|
|90 Liter||22.5 CBM||27.75 Liter||2136||212.00||1924|
Savings analysis: CNG & Petrol/Octane
- 1 ltr. Petrol= 0.841 m3 of CNG
- Price of 1 ltr. Octane: Tk. 77
- Price of 1 cubic meter CNG: Tk. 16.75
- Price of 1 ltr. petrol equivalent of CNG= 00.81 X 16.75 = Tk. 13.56
- Fuel cost save 80% by using CNG against Octane
|Cost per Liter||Tk. 77/=||Tk. 16.75/=||Tk. 60.75/=|
|Cost of 8 Liters||Tk.616/=||Tk. 134/=||Tk. 482/=|
|Monthly consumption||Tk. 18480/=||Tk. 4020/=||Tk. 14460/=|
|Yearly Consumption||Tk. 221760/=||Tk. 48240/=||Tk. 173520/=|
Based on our product we have segmented our market in three ways.
a) Vehicle Aspect
b) Client Aspect
c) Product Aspect
These three aspects are having also different parameters that are described below.
Navana CNG use different type of kits for:
Vehicle having capacity below 1000CC
Vehicle having capacity below 1000CC – 2000CC
Vehicle having capacity below 2001CC – 3000CC
Vehicle having capacity below 3001CC – 4000CC
Vehicle having capacity below 4001CC & above
Basically three types of clients are served by Navana CNG. These three are:
Liquefied Petroleum Gas (LPG), where natural gas is not available
Compressed Natural Gas (CNG), where natural gas is available
Market Targeting & Positioning:
Based on the demographic variables like income, occupation, education, household status and geographic location, the target market of the product has done. It is found that, Navana’s target customer is the owner of vehicle and vehicle population is significantly big in Dhaka, Chittagong, Sylhet and other metropolitan cities. So, based on this information, targeting and positioning has done.
People: Navana CNG hire expert engineer for their activities. Mainly they recruit engineer from BUET and other renowned institutions.
Product: Latest and premium brand product can be used as marketing mix element to get more market share.
Price: Selling price can be reduced by practicing value chain model.
Place: New places can be found out to retain existing customer, catch more customer and to increase the target market volume.
Promotion: Special promotion can be done to increase the sales volume.
a) Core Benefit: Navana CNG Limited is providing CNG services in all over the Bangladesh. And the core benefit of the product is to provide CNG service.
b) Basic Product: To convert the vehicles to CNG the basic product of Navana CNG is traditional CNG conversion kit.
c) Expected Product: Expected product is a set of attributes and conditions buyers normally expect when they purchase their product. Expected product of Navana CNG is Lambda Control System (LCS), the second generation of CNG kit that ensures auto tuning.
d) Augmented Product: This is the product that exceeds customer expectations. The augmented product of Navana CNG is OMA gas, the fourth generation of CNG kit that ensures auto tuning and auto reversibility to conventional fuel.
Product Line – Length
CNG RE-FUELING STATION
- SPA, Italy
- Inflex, Argentina
- EKC, India)
- AirBlast, Argentina
- Liquefied Petroleum Gas (LPG)
- Liquefied Natural Gas (LNG)
Plan with the Product:
PRESENT STATUS OF PRODUCT IN 2008 & PLAN WITH THE PRODUCT IN 2009
YEAR – 2009
REVENUE (in TK)
YEAR – 2010
REVENUE (in TK)
|3 Wheeler Conversion|
Kit & Cylinders and
Spare Sales & Service
|Cylinder Testing Unit||Dhaka|
Taka 25 Crore 97 Lakh only
Taka 42 Crore 27 Lakh Only
Objective: To maximize the current profit and as well as market share.
PRICES FOR CNG CONVERSION
The Prices of the CNG conversion are given below:
|SL NO||VEHICLE TYPE||CYLINDER CAPACITY|
(in water liter)
|PRICE (in TK)|
|01||Car||40 / 50 / 60||53,000 – 62,000|
|02||Microbus||60 / 90 / 95||62,000 – 72,000|
|03||Bus / Truck||60 / 90||1,50,000 – 2,50,000|
Source: Sales Brochure, NAVANA-CNG, 2009
To make the price sensitive and to beat the competitor, Navana CNG offers three types of prices.
a) Low Value – Low Price: Navana CNG offers lower price for lower quality of the product. Such as CNG conversion with Argentinean Kit and Indian Cylinder.
b) Medium Value – Medium Price: For moderate quality product Navana CNG offers medium price. Such as CNG conversion with Italian Kit and Argentinean Cylinder.
c) High Value – High Price: For better quality product Navana CNG offers high price. Such as CNG conversion with Italian 3rd or 4th generation Kit and Brazilian Cylinder.
Navana CNG’s business involves the following steps in brief:
Importing raw material from overseas suppliers.
Available gas networking area.
Purchase raw material from local suppliers.
Processing the raw material to final product for selling to customer.
Sales and marketing activities to general sales.
After sale service.
Keeping sufficient margin as profit.
Strong brand image make easy to promote its product for Navana. They don’t exercise aggressive promotional strategy. Promotional strategies followed by Navana CNG are as follows:
- Public realation
- Personal relation
There is no doubt of contribution of advertisement. No one can’t market their product without advertisement. Navana target their individual customer by advertisement.
Advertisement vehicle used by Navana:
- Radio Ad: One of the most popular media of advertisement in Bangladesh is FM radio. Recently Navana Use FM radio to promote their product. They have contact with all of the FM channels.
- Newspaper ad: Newspaper ad also contributes a major sales promotion for Navana CNG. It has a great impact on the target group of Navana CNG. Basically Navana CNG use Daily newspaper of Bangladesh
- Billboard ad: Another new phenomena of advertisement of Bangladesh is billboard advertisement. Navana purchase convenient location for billboard ad.
Promotional expenditure of major CNG companies
Navana takes the first position in the market place by invest huge amount in promotional sector. Like Navana Southern & Rahimafrooj also heavily invest in promotional sector and got the reward of that effort.
Navana maintain relations with all types of public. Such as Government, media, etc. Navana attend all types of car fair as well as any other fair.
Navana join tender organized by different corporate house as well as Government. By joining this type of effort Navana gets a major source of corporate client. Navana have negotiation with various car importer company. As Navana has the legal authorization of importing brand new Toyota car, also contributes a handsome figure of sells.
Example: Navana join a tender called by Grameen Phone. This carries a proposal of conversion more than 600 cars. This proposal is under process.
The main parameter of Navana CNG’s value chain model is given below:
b) Business Development Services
c) Navana CNG (Manufacturer)
Value chain model shows that business development services (BDS) is very much important in between the Manufacturer and supplier. Because the main BDS for Navana CNG are banks, insurance companies, C & F agent etc. Because when Navana CNG wanted to import the materials from abroad; at first it needs to open a L/C, to ensure the materials and after coming into Chittagong sea port C & F agent help them to release the goods. BDS is less important in between manufacturer and clients because as Navana CNG has a good brand image in that industry and customer has faith on Navana Group
Southern Automobiles Ltd.
Country’s 2nd largest private CNG Conversion Workshop owned by Southern Automobiles Ltd.,was formally inaugurated on 12 Noverber 2001. Southern also started the CNG Re-fueling station in Dhaka on 16 December 2002. As a part of on going development project, Southern expanded its CNG activities in Chittaging, Sylhet, Moulvibazar and Manikgonj.
Southern is using the Worlds best CNG Conversion Kits manufactured By Tartarini Auto Spa, Italy and CNG Cylinder manufactured by Faber, Italy for Conversion of vehicles into CNG System. Any type of latest Model Vehicles Converted successfully into CNG System using Computerized Process at Southern CNG Workshop, Dhaka. Southern also converting Diesel vehicles into dedicated CNG system. As per international rule, CNG Cylinder re-testing in every after five year is mandatory and safe. CNG-Cylinder Re-testing facilities are available at Southerns CNG Workshop, Dhaka.
INTRACO means reliability, leadership, efficiency, honesty, professionalism and dedication. Intraco is a growing company in CNG sector involved in setting up CNG Refueling Stations all over Bangladesh. They are using the latest & state of the art technology for the CNG Refueling Station by the collaboration of Kwangshin Machine Industry Co, Ltd, Korea & Kraus Global Inc, Canada. They have introduced the FAST FILLING technology for the very first time in our country to fill the CNG driven buses & trucks with 7-10 minutes. They are now providing the TURN KEY SOLUTIONS for CNG Station owner/Petrol Pump owner for setting up the CNG Stations. For it’s out standing efforts Intarco CNG has achieved the prestigious ISO 9000:2001 certificate as a part of her success of story. It is very much tremendous to recall that all over Bangladesh territory this group has set up lot of CNG conversion & refueling stations. As a matter of fact, this group is the pathfinder in CNG sector and became the member of “Bangladesh CNG Filling Station & Conversion Workshop Owners Association”.
Intraco’s vision is to give our next generation a pollution free green world which will full of harmony, introduce new horizon in all business concerns. Create employment, improve the .socioeconomic condition of our country and make our beloved country from developing country or developed country
Mission is to serve the nation with quality service and product. They are dedicated to ensure the optimum security and safety of our clients in every possible way and committed to maintain the quality of products and the standard of services.
Intraco CNG limited incorporation with CYM Materials; Argentina proudly presents Cylinder testing Facilty. This is the 1st ever computerize Testing Facility. The principle aim this plant is to perform a periodic inspection and testing Procedure of the cylinders.
One of the leading CNG companies in Bangladesh is Rahimafrooj CNG ltd.It helps to setup CNG Fuel Station on a turn-key basis. It also assists in obtaining financial support from the Financial Institution to setting up CNG station. It provides round the clock technical supports and training.
It has its own conversion centers where you can convert your Octane or Petrol driven automobile into CNG. Rahimafrooz CNG offers an innovative and technically advanced system for conversion of all types of vehicles into CNG It is the sole technical and commercial representative of Lo.gas s.r.l. of Italy. All CNG components are given full warranty with necessary technical support.
Rahimafrooz CNG has team of skilled and trained people who are capable of handling every type of CNG related issues and problems and of converting any kind of vehicle into CNG. It also provides all types of technical support related to CNG stations, systems and kits to individuals and institutions. To convert your Petrol (Octane) driven car into CNG or Natural Gas Vehicle (NGV), Rahimafrooz CNG uses the kits of Lo.gas s.r.l. and cylinder of international standard. All products and services come with 15-month warranty.
Rahimafrooz CNG uses the technology of Lo.gas s.r.l. of Italy. Lo.gas Kits of Italy is the manufacturer of CNG Conversion Systems and a dynamic company in the field of Gas Technologies & Equipment for conversion of all internal combustion engines from petrol to NGV.
Rahimafrooz CNG offers seamless steel cylinders made internationally according to European (EN-1964), Canadian and New Zealand (NZS-5454) manufacturing standard.
Shohagh CNG Is a Govt. approved CNG Conversion Company. It deals different application of natural gas such as petrol conversion, Diesel conversion, Motorcycle conversion, CNG station and Gas -station machinery setup. To fulfill the different activities of CNG the company is working jointly with different international reputed organization. The company also believe the importance of the technical know how of local technical team. Considering that requirement the company has trained their people from RPGCL as well as by- international experts also.
Since from the beginning the company has converted over 7000 vehicles to CNG only in Dhaka city. Now the company has expanded its activities in different district in Bangladesh. Considering the customer desire Shohagh CNG is now at Dhaka, Chittagong, Sylhet and Bogra.
Currently Navana CNG is facing monopolistic competition where many competitors are able to differentiate their offers in whole or part. Competitors basically focus on market segments where they can meet customer needs in a superior way and command a price premium.
Rating of Competitors
Quality of Service
NOTE: 5 = Very high, 4 = High, 3 = Moderate, 2 = Low, 1 = Very Low
If we see the above table, It is clearly identify that the customer awareness, quality service and service provider is extremely high for Navana CNG. But on the other hand regarding promotion Southern is extremely high than the all other CNG industries in Bangladesh.
As the first player in the market, Navana has a considerable amount of hold in the market. This is one of the biggest strengths of Navana. Navana doesn’t only have strength for their product quality but also their sales and distribution system.
They have covered a bit of its marketing and sales system and its strengths are given below:
- Use Landarienzo (Italy), Safe(Italy) kits.
- Use Inflex (Argentina) cylinders.
- 15 months free service from the date of conversion.
- 15 months replacement guaranty for all Conversion Mechanical Parts.
- Cylinder warranty for 5 years.
- Cylinder standard is NZS 5454, not ISO 11439200.
- Electronics (Selector switch/ Mano meter TAP) are from AEB company, New Zealand, Except VISA/Master Card
- Dedicated Engineers for the conversion.
- Engineers are trained up by foreign experts.
- 9 Conversion unit at Dhaka, Chittagong, Sylhet and Bogra and more
- Foreign Expert technician.
- Most competitive and dependable price.,
- Door to door pre-conversion inspection facilities.
- Special corporate package.
- Provide bank loan facility
No matter how strong a firm may be. It will always have some weaknesses. The points given below best describe the weakness of Navana. Most of its weakness lies in its distribution system, as Navana offers its services at roughly the same price, as its competitors and the quality of all the firms in the industry are homogeneous.
- Customer lists are not tested.
- Some gaps in range for certain sectors.
- Charges high price for their product
- Cannot supply end-users abroad.
- Need more sales people.
- No pilot or trial done yet.
- Don’t have a detailed plan yet.
- Delivery-staff need training.
- Lack of customer service training.
- Processes and systems, etc Management cover insufficient.
Opportunities for Navana’s are endless. They have the money and experience to diversify. So opportunities for Navana are given below:
- Possibility of introduce new product LNG in the market place.
- Local competitors have poor products.
- Profit margins will be good.
- End-users respond to new ideas.
- Could extend to overseas.
- New specialist applications.
- Can surprise competitors.
- Support core business economies.
- Could seek better supplier deals
No matter how big or small, companies will always have threats that question their very existence. However some threats remains within the company itself rather than from its rivals or the anticipated new comers. These threats could arise from the strategies adopted by the company, in this case Navana, which prohibit Navana to function smoothly. Some of these threats are listed below: Legislation could impact.
- Huge energy crisis
- Gas crisis
- Possible entry of giant competitors
- Existing core business distribution risk.
- Retention of key staff critical.
- Could distract from core business.
- Possible negative publicity.
- Vulnerable to reactive attack by major competitors.
From people’s point of view
HR policy for the employee is not up to the mark.
Wage and salary structure is not good.
Insufficient training for employee.
From product’s point of view
No alternative source of raw material and tools to reduce the high price keeping the quality same.
No long term planning for inventory management to ensure availability of product and minimum cost in transportation.
Management is not efficient to bargain local supplier.
Lack of influence to the government to explore new gas field so as to decrease the possibility of gas shortage in this industry.
From process point of view
Production capacity is insufficient in peak season.
Employee of customer service department is not trained enough.
Not enough use of technology and instrument to make the time of conversion shorter.
From physical Evidence point of view:
More customer service is needed.
Workplace environment is not good.
From price point of view
Price is relevantly high .
Higher cost of capital.
The price of the gas is unsteady.
Impact of continuous price rise of oil and steel.
From place point of view
Number of Workshop is inefficiently.
No insurance coverage of workplace.
From promotion point of view
Lack of manpower for running promotional activities.
No long term promotional planning.
Increase brand image of the product.
During the internship period, I have learned about of Navana CNG Ltd. activities, marketing strategies, the strength and weaknesses of this firm. On the basis of the above problems here I suggest some recommendations for Navana CNG ltd.
From people’s point of view
Setting up complete HR policy for the employee.
Revise base wage and salary structure.
Arrange specific training for employee.
Keep vigilant about the entrance of new competitor in the market.
From product’s point of view
Alternative source of raw material can be find out to reduce the high price with keeping the quality same.
Customized product for Bangladesh market can be introduced to battle high price.
Tools / equipment to be imported to optimize the performance of the product.
Efficient management is required to bargain local supplier.
Keeping in touch with the product plan of the manufacturer.
To influence the government to explore new gas field so as to decrease the possibility of gas shortage in this industry.
From process point of view
Try to Increase the production capacity.
Employees of customer service department should be trained.
Use such type of technology and instrument which can make the conversion time shorter.
Computerized sell of the product may be introduced.
Customer retaining policy has to be undertaken into consideration.
From physical Evidence point of view:
Better customer service can be opened in the area of the target market.
Workplace environment should improve.
From price point of view
Cheaper price of the product can be searched keeping the quality same.
Credit facility from the exporter can be sought.
Should try to find lower cost of capital.
Discuss with the government about keeping the price of the gas steady and stable.
Stock of the raw material can be thought to reduce the impact of continuous price rise of oil and steel.
From place point of view
Work environment can be made more comfortable for the worker.
Steps to be taken to utilize workshop area more efficiently.
Workplace to be taken under insurance coverage immediately.
From promotion point of view
Dedicated manpower to be recruited for running promotional activities.
Brand creation is yet due to perform. This has to be done immediately to create a brand image of the product.
More advertising activities should increase.
Billboard should increase to 100 from 27 across the country.
Navana CNG Limited, a sister concern of Navana Group is the leading CNG service provider in Bangladesh. From our study it is clear that CNG equipment suppliers are limited in the world, all known suppliers are active in Bangladesh market and most of them have already secured a position. From the analysis of primary and secondary data it is observed that Navana dominates the whole CNG market. They are in good position by delivery of quality product as well as excellent customer service. Navana already established strong customer awareness. But there is lack of well planned marketing effort. Company should also make close touch with end customer. It is found three types of business field, such as CNG machineries business, CNG conversion business and cylinder retest. Navana do all of these business. It is also evident that high cost, lack of proper quality of kits and shortage of capital the CNG station owners are reluctant to buy product with higher price.
According to the extensive study, it is found that the major CNG player :
- Navana as market leader
- Southern as market challenger
- Rahimafrooj as market follower
Strategies should follow by Navana limited as they are market leader:
- Suggest Government to ensure the availability of gas and electricity
- Try to enter new geographical are
- Should invest on R&D
- Should defend the market share
- Hold current customer and win a fair share of new ones
- Try to reduce operation cost
- Right balance between cost and profit
- Carefully observe the movement of market challenger(Southern), and follower.
- Try to bring distinctive advantages on location , services , financing